Middle East Paper Co. (1202) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Middle East Paper Co.

Why is Middle East Paper Co. ?

Poor Management Efficiency with a low ROCE of 7.92%

The company has been able to generate a Return on Capital Employed (avg) of 7.92% signifying low profitability per unit of total capital (equity and debt)

The company is Net-Debt Free

Poor long term growth as Net Sales has grown by an annual rate of 9.92% and Operating profit at -144.22% over the last 5 years
The company is Net-Debt Free
The company has been able to generate a Return on Equity (avg) of 9.24% signifying low profitability per unit of shareholders funds

Poor long term growth as Net Sales has grown by an annual rate of 9.92% and Operating profit at -144.22% over the last 5 years

The company has declared negative results in Mar'2026 after 2 consecutive positive quarters

PRE-TAX PROFIT(Q) At SAR 0.93 MM has Fallen at -89.61%
INTEREST COVERAGE RATIO(Q) Lowest at 348.67
RAW MATERIAL COST(Y) Grown by 18.26% (YoY)

With ROE of -1.14%, it has a risky valuation with a 0.87 Price to Book Value

Over the past year, while the stock has generated a return of -34.20%, its profits have risen by 65.6%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Paper, Forest & Jute Products)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Middle East Paper Co. for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Middle East Paper Co.

-34.2%

-1.83

30.37%

Saudi Arabia All Share TASI

-0.13%

-0.01

13.67%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.92%

EBIT Growth (5y)

-144.22%

EBIT to Interest (avg)

6.37

Debt to EBITDA (avg)

1.35

Net Debt to Equity (avg)

0.09

Sales to Capital Employed (avg)

0.45

Tax Ratio

49.79%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

7.92%

ROE (avg)

9.24%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.87

EV to EBIT

-1535.00

EV to EBITDA

12.54

EV to Capital Employed

0.88

EV to Sales

1.39

PEG Ratio

Dividend Yield

ROCE (Latest)

-0.03%

ROE (Latest)

-1.14%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at SAR 132.66 MM

NET PROFIT(HY)

Higher at SAR -3.45 MM

ROCE(HY)

Highest at 0.99%

-14What is not working for the Company

PRE-TAX PROFIT(Q)

At SAR 0.93 MM has Fallen at -89.61%

INTEREST COVERAGE RATIO(Q)

Lowest at 348.67

RAW MATERIAL COST(Y)

Grown by 18.26% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 20.67 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 3.02 times

NET SALES(Q)

Lowest at SAR 244.29 MM

NET PROFIT(Q)

Lowest at SAR -1.99 MM

EPS(Q)

Lowest at SAR -0.02

Here's what is working for Middle East Paper Co.

Operating Cash Flow

Highest at SAR 132.66 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (SAR MM)

Here's what is not working for Middle East Paper Co.

Pre-Tax Profit

At SAR 0.93 MM has Fallen at -89.61%

over average net sales of the previous four periods of SAR 8.91 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (SAR MM)

Net Profit

At SAR -1.99 MM has Fallen at -134.07%

over average net sales of the previous four periods of SAR 5.85 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (SAR MM)

Interest Coverage Ratio

Lowest at 348.67

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Net Sales

Lowest at SAR 244.29 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (SAR MM)

Net Profit

Lowest at SAR -1.99 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (SAR MM)

EPS

Lowest at SAR -0.02

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (SAR)

Debt-Equity Ratio

Highest at 20.67 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 3.02 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 18.26% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales